There are a number of different ways that you can invest in a business: you might open a savings account, buy a share or invest in a fund. We call these different ways of investing 'buying investment products'.
There are several different types of investment products on Ethex. The level of risk you are taking varies depending on the type:
- Savings accounts and saving bonds and ISAs are places where you can put some cash and earn some interest. Savings accounts listed on Ethex are guaranteed by either the government’s Financial Services Compensation Scheme, or the Dutch Deposit Guarantee Scheme. and so are lower risk.
- Equity investments include Withdrawable shares, Transferable or Ordinary shares and Depository Receipts. Withdrawable shares are usually issued by co-operatives. They pay you interest, but your money is more at risk if the business does badly than it is with savings. Ordinary Shares are usually issued by companies. They pay you dividends, but only if the company makes profits. Depository Receipts are issued by international social investment organisations and are akin to shares without voting rights.
- Business and charity bonds and debentures are longer term investments where you are lending money to an ethical business or charity for a fixed amount of time, from 1 to 25 years, or more. The business pays you interest or a share of the profits and returns the money you originally invested at the end of the term.
- Funds invest in a variety of different businesses. The fund manager makes the investment decisions on your behalf.
Whilst the savings accounts are relatively low risk, the equity and business and charity bonds are mostly investments in unlisted companies or co-operatives and these are, by their nature, high risk. The returns on these investments can also vary greatly. If you are in doubt about whether an investment product is suitable for you or not, please seek investment advice. Generally speaking, you should only invest what you can afford to lose.
When browsing the investment products you can filter them by type.
The Ethex team are here to help from 9am to 5pm
01865 403 304